Indian retailers offering hefty discount ahead of tax raise

Dhaka,  Wed,  26 July 2017
Published : 12 Jun 2017, 13:17:39
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Indian retailers offering hefty discount ahead of tax raise

Indian retailers offering hefty discount ahead of tax raise
Traders fear the transition to the new goods and services tax (GST) that comes into effect on July 01 in India will lead to a hefty levy on existing stock, so they are offering steep discounts on everything from televisions to motorbikes in a rush to offload their inventory according to a global media report on Monday. 

Customers are being offered discounts of more than 80 per cent on some items, with business groups warning that companies may incur heavy losses in the scramble. Retailers right now are offering discounts from 5.0 per cent upwards. They are desperate to move as much of their existing stock as possible before July 1. 

Some warn, however, that what is good for consumers might not be good for the economy as a whole, because retail sales figures and tax receipts for June are likely to be significantly worse than expected. 

While the number of items sold is likely to rise, experts warn the overall value will be cut because of the steep discounts.

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